The exclusive commercial endowment insurance, which has been piloted in Chongqing and Zhejiang for more than half a year, has ushered in the double expansion of participants and pilot scope.
On February 21, the CBRC issued the notice on expanding the pilot scope of exclusive commercial endowment insurance, and decided to expand the pilot area of exclusive commercial endowment insurance to the whole country from March 1, 2022. On the basis of the original six pilot companies, pension insurance companies are allowed to participate in the pilot of exclusive commercial pension insurance.
Prior to this, the CBRC decided that since June 1 last year, six family life insurance companies will carry out exclusive commercial endowment insurance pilot projects in Zhejiang Province (including Ningbo) and Chongqing. According to the China Banking and Insurance Regulatory Commission, since the pilot of exclusive commercial endowment insurance was launched, the overall operation has been stable and the social response has been good. By the end of January 2022, six pilot companies had underwritten nearly 50000 insurance policies, with a total premium of 400 million yuan, including nearly 10000 employees of Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) new business types such as couriers and online car Hailing drivers.
According to the information previously disclosed by Zhejiang banking and Insurance Regulatory Bureau, the Bureau has gradually expanded the sales channels of exclusive commercial endowment insurance to realize the parallel of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , individual insurance and bancassurance channels. As of December 20, Zhejiang (excluding Ningbo) has underwritten more than 13000 exclusive commercial endowment insurance, with a cumulative premium income of about 76 million yuan. Relevant persons from Chongqing banking and Insurance Regulatory Bureau told surging news that the Bureau was preparing to hold a press conference to introduce the relevant situation.
Zhu Junsheng, director of China Insurance and Pension Research Center, Wudaokou School of finance, Tsinghua University, has previously called for “opening up the pilot areas as soon as possible and allowing more institutions to participate in the pilot”. In his view, the pilot scheme of exclusive commercial endowment insurance has important breakthroughs and innovations, which will help to improve the multi pillar pension system. In order to promote the healthy development of exclusive commercial endowment insurance, it is necessary to connect with the third pillar, provide tax preference policy support, improve the rate of return on investment, and liberalize pilot areas and institutions.
In an interview with surging news, the relevant person in charge of Ping an endowment insurance said that it is the responsibility of the endowment insurance company to be responsible and actively participate. Pension insurance companies (including CCB Pension Company) are the only financial institutions with the word “pension”. Therefore, it is an inevitable choice for pension insurance companies with insurance business to actively participate in exclusive commercial pension insurance.
The above person in charge also believes that exclusive commercial endowment insurance will become an important potential product form of the third pillar. Therefore, actively participating in the pilot will enable the company to win the initiative in the competition and customer service of the third pillar in the future. At the same time, exclusive commercial endowment insurance is one of the key points to promote common prosperity. From the perspective of the first batch of pilot life insurance companies, unconventional employment groups are important insured groups, and exclusive commercial old-age insurance has improved the old-age security level of relevant groups.
According to Zhao Yao, an analyst at Guosheng securities, the pilot scope is fully promoted, and the contribution to the new business value (NBV) of listed insurance companies in that year is expected to be 0.63%. With the increase of consumer recognition, the continuous support of regulatory policies and the promotion of insurance companies, this proportion is expected to continue to increase for a long time.
The pilot document previously issued by the cbcirc requires that the products launched by various insurance companies have the characteristics of simple insurance, flexible payment and stable income. Consumers can receive pensions only when they are 60 years old and above, and the receiving period is no less than 10 years.
According to the information disclosed by six pilot life insurance companies, including PICC Life Insurance, China Life Insurance Company Limited(601628) , Taiping Life Insurance, CPIC life insurance, Taikang Life Insurance and New China Life Insurance Company Ltd(601336) , the exclusive commercial endowment insurance products adopt the income model of “guarantee + floating” and provide two portfolio accounts with different risk preferences for customers to choose, many of which are steady and enterprising. Each portfolio account has the minimum guaranteed interest rate. The investment income above the minimum guaranteed interest rate is uncertain, and the customer needs to bear the corresponding investment risk.
Recently, six companies have successively disclosed the announcement of last year’s settlement interest rate of exclusive endowment insurance products. Among them, the settlement interest rate of robust accounts is 4% – 6%, and that of aggressive accounts is 5% – 6.1%. The minimum interest rate is 2% ~ 3% in the multi guarantee account; Aggressive accounts are 0% – 1%, of which two are 5%, three are 0.5% and one is 1%.
According to the pilot content, the pilot insurance companies should actively explore the pension needs of service Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , employees of new formats and various flexible employees. Relevant enterprises and institutions are allowed to provide payment support for the insurance of the above-mentioned personnel in an appropriate manner and in accordance with the law.
It can be seen that such products have brought a more perfect old-age security for new business forms and flexible employees such as online car Hailing drivers, takeout workers, couriers and online anchors. Some practitioners in traditional industries also choose to insure such products to provide more security for their elderly care.
Zhu Junsheng believes that allowing relevant enterprises and institutions to provide payment support for the insurance of the above-mentioned personnel in an appropriate way will help to connect the second pillar and third pillar pensions of this group in the future, and realize the connection of preferential tax policies, investment management, payment, account records and fund transfer and succession.
In this expansion document, pension insurance companies have become new participants. The relevant person in charge of Ping An pension insurance told surging news that at present, there are nine pension insurance companies and one pension management company in China, but some pension insurance companies do not engage in insurance business and focus on annuity and other businesses. At present, pension insurance companies engaged in insurance business have three advantages in participating in exclusive commercial pension insurance, including the advantages of carrying out individual tax deferred commercial pension insurance, the advantages of opening up the two and three pillars of pension and the advantages of group insurance business.
